Fundamental Overview
Gold continues to pull back from the all-time highs although it’s not clear what has been driving it in the past few days. Despite lower real yields and a weaker US Dollar, gold couldn’t catch a strong bid to make a new all-time high.
The market might be waiting for a stronger catalyst to push into new highs. Tomorrow, we have the FOMC decision where the central bank is expected to hold interest rates steady. The focus will be on Fed Chair Powell. If he sounds a bit more dovish and optimistic on inflation, then we will likely see gold rallying back into the highs.
Gold Technical Analysis – Daily Timeframe
On the daily chart, we can see that gold continues to pull back from the all-time highs with the 2721 level being eyed as potential support. That’s where we can expect the buyers to step in with a defined risk below the level to position for a rally into a new all-time high. The sellers, on the other hand, will want to see the price breaking lower to increase the bearish bets into the 2600 level next.
Gold Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we have an upward trendline defining the bullish momentum. The buyers will likely lean on the trendline to position for a rally into new highs, while the sellers will look for a break lower to target a drop below the 2721 support next.
Gold Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we have a downward trendline defining the current pullback. The sellers will likely lean on it to push into new lows, while the buyers will look for a break higher to increase the bullish bets into a new all-time high. The red lines define the average daily range for today.
Upcoming Catalysts
Today we get the US Consumer Confidence data. Tomorrow, we have the FOMC Policy Decision. On Thursday, we get the US Q4 GDP report and the latest US Jobless Claims figures. On Friday, we conclude the week with the US PCE and the US Employment Cost Index.
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This article was written by Giuseppe Dellamotta at www.forexlive.com. Read More Details
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